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exit strategy
(redirected from Exit plan)

   Also found in: Wikipedia, Hutchinson 0.03 sec.
exit strategy
The method by which an investor plans to cash out of an investment. For example, a venture capitalist may intend to utilize an initial public offering to liquidate an investment in a closely held company.

Exit Strategy
1. In entrepreneurship and venture capital, a plan to end one's involvement with a business or investment while making the greatest possible profit (or smallest possible loss). An exit strategy is designed to turn an illiquid asset into liquid cash for the investor. The most straightforward exit strategy is simply selling one's business. If this is impossible, difficult, or unprofitable, another example is discounting one's products to sell as much as possible in as short a time as possible, as in a going-out-of-business sale.

2. In trade, a plan to close a position at a certain point. For instance, a trader may make a stop-loss order in order to close an unprofitable position.


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This step is crucial because no exit plan can stay on track if the owner's unexpected absence is not addressed.
They told us every family has to have an exit plan and that there should be two exits to every room.
If we provide an exit plan and a departure date, the Iraqi resistance will vanish.
 
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